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Low Doc Advantage Guidelines | Effective August 1, 2015

Low Doc Advantage Guidelines | Effective August 1, 2015
Further to OSFI’s Guideline B-21, Canada Guaranty is releasing new requirements for information used to verify the reasonability of income for self-employed borrowers. The following guidelines will be effective August 1, 2015.

The Low Doc Advantage program is designed for borrowers with an established history of self-employment and a strong credit profile. In addition to ensuring the borrower’s income is reasonable for the nature and tenure of the business:

  • Lenders are required to obtain the Notice of Assessment (NOA) from the most recent tax year, at the time of application, to confirm no income tax arrears and the income from line 150 for each self-employed borrower.
  • The following information must be included in the submission notes of the application, for each self-employed borrower:
    1. Income amount confirmed by line 150 on the most recent NOA.
    2. Gross revenue of the borrower’s business.
    3. Type of business being owned and operated (e.g. landscaping, bookkeeping, etc.).
    4. Ownership structure (e.g. sole proprietor) and the percentage of ownership.

All Low Doc Advantage applications will continue to benefit from review by a Senior Underwriter, dedicated to providing solutions that balance prudent risk with the long-term homeownership goals of qualified borrowers. Please do not hesitate to contact a member of our team with any questions.

Thank you,

Mary Putnam | Vice President, Sales and Marketing
Canada Guaranty Mortgage Insurance Company

Telephone 416.640.8936
Toll Free 866.414.9109 ext. 8936

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